Dormant Whale Scoops 50B SHIB Off Coinbase

Dormant Whale Scoops 50B SHIB Off Coinbase – What This Means

In Brief

• A previously dormant whale withdrew over 50 billion SHIB from Coinbase for the first time in a year.
• The move is seen as a sign of long-term confidence, as large holders continue to accumulate.
• Despite positive whale behavior, broader market weakness is limiting SHIB’s short-term rally.

Although the crypto market has been slow and almost stagnant, some crypto assets are seeing whale activities. One whale who has been dormant has just reappeared, withdrawing over 50 billion SHIB after a year.

Crypto data intelligence firm Arkham Intelligence shared the information on the transaction. Revealing that the whale withdrew exactly 53.59 billion SHIB on December 15th. The whale is said to be a Coinbase user known for such massive transactions on the exchange.

However, this withdrawal is the first the whale has done since December 2016, which reveals a pattern. While the wallet also has other assets, SHIB is by far the dominant asset, with ETH and BASED having a combined worth of less than $50.

What the SHIB Withdrawal Could Mean

Shiba Inu is the second-largest memecoin by market capitalization after Dogecoin. As a memecoin, it is popular among fans of the Shiba Inu dog which inspired its creation, but has also become more than just a memecoin. The team behind it has been working to ensure that it brings some real world use cases to it and brings some organic price gains.

While in the process, some big investors already have faith in the project as is shown by the huge withdrawal from Coinbase. Such withdrawal usually shows that the whale has confidence in the assets’s future performance and is withdrawing to a safe personal wallet for long-term holding.

Apparently, the whale isn’t the only one that has been moving SHIB around. Data shows that other whales have been moving such huge amounts of SHIB in trillions to Coinbase as well. Interestingly, those moving the asset to centralized exchanges don’t seem to be selling as is usually the case when assets are deposited on exchanges.

What Happens Next for SHIB?

The massive withdrawal of SHIB off exchanges and the reluctance in selling it shows that investors hold positive sentiment around the asset. With such persistent holding, the price may eventually pick up in the long-term, as such accumulation usually precedes a price rally.

However, the current market doesn’t look good enough to support a rally in the short term. Analysts have identified a slowdown in the market that has affected Bitcoin’s active address, which has also affected altcoins including SHIB. Such a slowdown must end for SHIB to see a rally.